Diamond, did you see divergence on GU, i'm trying to get better at spotting the div and 123's
- #2,743
- Apr 6, 2011 9:08am Apr 6, 2011 9:08am
- Joined Sep 2010 | Status: Trader | 2,034 Posts
@ Diamond,
Am v interested to see your analysis, I've entered before the 1-2-3 completes (at least I think I have) thanks to divergence showing on my 8,2,2 stoch, the trigger going on the cci, and the fact that it's near (well, just under) prev support.
So do you wait for this trade to 1-2-3? Also, where do you draw your TL from/to, have 2 different kinds showing on my chart. Are you waiting for the retrace down, and then waiting to go long with the cci trigger?
Blue arrow shows cci trigger.
Update. Exited at profit for 1/1.5 RR
You animal. You got more pips than me. That is so not cool!
Tried to pm you, but for some reason it's not permitted. Do you know why?
Nice trade on the GBP Diamond.
- #2,747
- Apr 6, 2011 9:32am Apr 6, 2011 9:32am
- Joined Sep 2010 | Status: Trader | 2,034 Posts
Apologies, I know this system is just for EURUSD but I use it on other pairs.
Missed EurUSD signal as was faffing around. Here is EURGBP buy setup, and exit, for 1:1 RR profit. Price continued higher.
Note the blue arrows showing the trigger candle-entry was made at the middle blue line, exit for profit was made at the top blue line.
There was divergence showing on my stoch indicator (find it easier to see divergence on this than on RSI-is v similar readings though).
Also, I'm more aggressive with my stops, and put it underneath the trigger candle...
imho, I would almost never trade the e/g using this system. The volatility is not there.
Also, I would not have traded in that "crowd" of bars. What I mean is when I see alot of consolidation, I simply will not trade there. Looking to the left of your e/g chart is alot of traffic congestion. Just like right now, when I choose the GU over the EU. If you look at EU chart, price was in heavy traffic and had been for most of European session. GU price had fallen below it's moderate area of traffic (btw-traffic is interchangable with consolidation, just easier to write) and exhibited to me, more fluid looking movement.
Once again, this is just the way I see it. And, like all people, I was born with the inalienable "Right to Remain Stupid".
- #2,751
- Apr 6, 2011 10:30am Apr 6, 2011 10:30am
Agreed Diamond, the 84 level was solid resistance. If the chart had been a bit clearer, with a bit less resistance to the left of the price, I'd have been tempted to let it run longer. As it happened, formed a (wonky)cup and handle and continured higher, but could easily have failed around those levels and continued down.
Trading with the trend, trading with divergence, and trading off SR levels with the CCI is a VERY nice way to trade. Stops me from entering too many trades too
I wouldn't have picked EURUSD this afternoon, really didn't like the look of it at all, despite it coming down to a support level from the morning trading....
In fact, I think I've identified when I'm uncomforatble entering a trade and would be grateful to know if anyone else feels the same. If all conditions are met, and the price is now returning to the trend, and the cci triiger goes. You enter long when the high of the trigger candle is broken-using EURUSD this afternoon as an example as that's what we're supposed to trade, I felt that 3/4 candles into the reversal with the trend, was just too late to be going long. I suppose i like to be closer to when the price turns-do people just ignore this and enter anyway?
Certainly makes more sense if placing SL under the swing low, and with a 1:1 RR
Trading with the trend, trading with divergence, and trading off SR levels with the CCI is a VERY nice way to trade. Stops me from entering too many trades too
I wouldn't have picked EURUSD this afternoon, really didn't like the look of it at all, despite it coming down to a support level from the morning trading....
In fact, I think I've identified when I'm uncomforatble entering a trade and would be grateful to know if anyone else feels the same. If all conditions are met, and the price is now returning to the trend, and the cci triiger goes. You enter long when the high of the trigger candle is broken-using EURUSD this afternoon as an example as that's what we're supposed to trade, I felt that 3/4 candles into the reversal with the trend, was just too late to be going long. I suppose i like to be closer to when the price turns-do people just ignore this and enter anyway?
Certainly makes more sense if placing SL under the swing low, and with a 1:1 RR
- #2,755
- Apr 6, 2011 11:55am Apr 6, 2011 11:55am
- Joined Sep 2010 | Status: Trader | 2,034 Posts
It is the high / low D not the close.
(post 107)
I stand corrected. Could of swore that I heard Div talk about this on one of the webinars, and state to use the "Close" of the set up bar. But post 107 clearly states low/high of SUB. Do I get a spanking now?
Observing the price action around the closing price, it seems to me that this price is well respected by the following price bar. If price does not exceed the close, it's not going to be a viable trade. I painfully recall jumping the gun, more than once, much to my chagrin, to learn this lesson. For now I think I will continue along the path I've been using and take my entry one pip beyond the close, until the time where I find out that I'm taking to many hits.*
*I am not suggesting anyone else attempt this, because this clearly not in league with what Div has so eloquently laid out for us.
++++++++++++++++++++++++++++++++
I stand corrected. Could of swore that I heard Div talk about this on one of the webinars, and state to use the "Close" of the set up bar. But post 107 clearly states low/high of SUB. Do I get a spanking now?
In all seriousness though for people trying to learn this system here's an example of why you need to read the rules over and over until you fully understand them..... and then read them some more!
This system works as it is and will make you alot of money if you master it. Master it as it is before you try to change or add anything.
- #2,760
- Apr 6, 2011 2:10pm Apr 6, 2011 2:10pm
- Joined Sep 2010 | Status: Trader | 2,034 Posts
Thank you, I can see your 123 now.
There was a similar 123 short earlier today that I think failed (I may be wrong). Can you comment if the setup was correct thanks
It does look like a likely spot for a 123 reversal.
I don't see any divergence. Myself I probably would have watched it for a awhile and then taken note of the news coming up. Although the news was for the gbp, during the London session the euro & gbp tend to not correlate the same way as they do during other sessions.
After awhile, I would have probably let it go because it was taking too long to set up. Most of the 123's I've seen, get it done in 5-8 bars. That's just my thoughts. Please consult crystal ball for the Correct answer.
